The crypto market is presently characterised with a bearish trend that has seen it garnered a lot of aspersion from crypto pessimists. However, despite the discouraging trend, crypto enthusiasts alike still find hope and assurance in the potency of the crypto industry to become the best. Crypto enthusiasts still see the industry as the key to assuaging the problems and deficiencies of irresponsible governance and monetary policies.
Salvation From Irresponsible Governance and Monetary Policies
Travis Kling, founder and chief investment officer of crypto hedge fund, Ikigai Asset Management, noted on CNN Business how the crypto industry is pertinent to saving many from the dangers of bad governance and monetary policies.
While referring to the top value cryptocurrency, Bitcoin, Kling stated that there is a really good chance the world has something better than gold. This he sees like a CDS against fiscal and monetary policy irresponsibility. The CDS is akin to assurance policy. The financial instrument pays out when a borrower defaults on debts. One of the issuers of CDS, AIG nearly collapsed during the 2008 economic crisis.
Kling further noted the effect of the buildup of debt on governments’ balance sheets and extreme steps taken by central banks globally to encourage growth. The fear of high deficit and the low-interest rate is said to be a possible cause of hyperinflation and a factor that will erode the value of the U.S. dollars and other major currencies.
The irregularity as noted in his opinion will trigger the writing of the script of the massive adoption of a new type of currency (cryptocurrency) will be written. A currency that is not controlled by the government according to Kling.
Optimism In The Crypto Market
The bearish trend in the crypto market has not dissuaded optimism in the crypto market. Morgan Creek Capital Management is launching a crypto fund soon which is aimed at crypto infrastructure according to the Morgan Creek founder and CEO Mark Yusko.
Yusko stated that the crypto market is at a stage of great wealth opportunity which is beyond imagination. Also, he believes Bitcoin will be one of the largest networks on the planet if not the largest.
Scott Kupor, the managing partner at venture capital firm, Andreessen Horowitz, stated that crypto is still in its infancy stage and is going to evolve tremendously in coming years. He noted that it is at the seed investment stage.